Enhanced
Defense
Financial
Management
Training
Course
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
American
Society
of
Military
Comptrollers
Student
Guide
•
Revised
2018
Copyright
(()
2000,
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
IMPORTANT
NOTE
FOR
STUDENTS
PLANNING
TO
TAKE
THE
CDFM
EXAMS
This
textbook
is
arranged
to
facilitate
teaching
the
Enhanced
Defense
Financial
Management
Training
Course
and
is
designed
to
broaden
the
student's
perspective
by:
•
Introducing
areas
of
financial
management
outside
of
the
student's
daily
responsibilities.
•
Exposing
the
student
to
Department
of
Defense
—as
opposed
to
service
specific
—financial
management
policies
and
procedures.
•
Providing
instruction
in
competency
areas
that
may
be
found
in
the
Certified
Defense
Financial
Manager
(CDFM)
Examinations.
Disclaimer:
Any
of
the
CDFM
Exams
may
include
questions
on
fiscal
law
and
other
topics
that
may
not
be
found
in
the
EDFMTC
textbook.
Copyright
©
2000.
rovsed
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
TABLE
OF
CONTENTS
Learning
Objectives
1.2.1
Study
Guidance
1.2.1
Additional
Information/References
1.2.2
Knowledge
Check
1.2.3
Introduction
to
Defense
Manpower
Management
1.2.5
Defense
Manpower
Management
Defined
1.2.6
Manpower
Concentrations
1.2.6
Manpower
Structure
1.2.7
Mobilization
and
Crisis
Issues
1.2.9
DoD
Manpower
Utilization
Policy
1.2.9
Mobilization
1.2.9
DoD
Total
Force
Policy
1.2.10
Master
Mobilization
Plan
(MMP)
1.2.10
Presidential
Authority
to
Activate
Reserve
Forces
1.2.11
Civilian
Employees
During
Crisis
Situations
1.2.12
Manpower
Estimates
for
Financial
Management/
FTE
Terminology
1.2.13
Department
of
Defense
Separation
Incentives
1.2.14
Federal
Activities
Inventory
Reform
Act
of
1998
1
.2.15
Annual
Lists
of
Government
Activities
Not
Inherently
Governmental
in
Nature
1.2.15
Competition
Required
1.2.16
Realistic
and
Fair
Standard
Competitions
1.2.16
Types
of
Activities
1.2.17
OMB
Circular
A
-76
—Performance
of
Commercial
Activities
1.2.19
Reliable
Cost
and
Performance
Information
1.2.20
Commercial
Activities
(OMB
Circular
A-76
and
DoDI
4100.33)
1.2.22
Management
Study
1.2.22
Performance
VVork
Statement
(PVVS)
1.2.23
Cost
Comparisons
1.2.24
Length
of
the
Process
1.2.24
Official
A-76
Announcements
and
Notifications
1.2.25
The
A-76
Moratorium
1.2.25
Copyright
©
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
TABLE
OF
CONTENTS
Ethics
1.2.26
Gifts
from
Outside
Sources
1.2.27
Acceptance
of
Gifts
by
Injured
or
Ill
Service
Members
and
Their
Families
1.2.28
Gifts
Between
Employees
1.2.28
Conflicting
Financial
Interests
1.2.29
Financial
Disclosure
1.2.29
Impartiality
in
Performing
Official
Duties
1.2.31
Seeking
Other
Employment
1.2.31
Misuse
of
Position
1.2.32
Outside
Activities
1.2.32
Honoraria
1.2.33
Post
-Employment
1.2.33
Representation
to
Government
Agencies
and
Courts
1.2.34
Supplementation
of
Salary
1.2.34
Informal
Advisory
Letters
and
Memoranda
and
Formal
Opinions
1.2.35
Tables
Table
1.2.1
-
Manpower
Management
Terminology
1.2.8
Table
1.2.2
-
Full
-Time
Equivalent
Terminology
1.2.13
Table
1.2.3
-
OMB
Circular
A-76
Key
Elements
1.2.21
Copyright
@
2000,
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Learning
Objectives
•
Relate
DoD
manpower
financial
budgets
to
manpower
structure.
•
Summarize
mobilization
processes
for
military
and
civilian
personnel.
•
Summarize
requirements
for
Federal
Activities
Inventory
Reform
Act
of
1998
and
its
impact
on
Commercial
Activities
(A-76).
LEARNING
OBJECTIVES
Learning
Objectives
•
Describe
the
key
elements
of
A-76
and
the
DODI
4100.33.
•
Recognize
and
use
terms
defined
in
the
Commercial
Activities
Program.
•
Describe
the
Government's
ethical
standards.
Defense
manpower
management,
as
used
in
fi
nancial
management,
refers
to
the
processes
for
estimating
manpower
requirements
for
budgetary
purposes
and
reporting
manpower
numbers
to
the
Office
of
Management
and
Budget
(OMB).
At
the
completion
of
this
competency
area,
you
should
be
able
to:
•
Relate
DoD
manpower
fi
nancial
budgets
to
manpower
structure.
•
Summarize
mobilization
processes
for
military
and
civilian
personnel.
•
Summarize
the
requirements
for
Federal
Activities
Inventory
Reform
Act
of
1998
and
its
impact
on
Commercial
Activities
(A-76).
•
Describe
the
key
elements
of
OMB
Circular
A-76
and
DODI
4100.33 as
they
relate
to
the
Most
Efficient
Organization
(MEO).
•
Recognize
and
use
the
terms
defined
in
the
Commercial
Activities
Program.
•
Describe
the
Government's
ethical
standards.
STUDY
GUIDANCE
The
Manpower
Management
competency
deals
with
the
fi
nancial
manager's
knowledge
of
manpower
and
force
management
as
they
relate
to
resource
management,
manpower
rules,
regulations,
laws,
and
development
of
manpower
requirements.
This
competency
area
addresses
familiarity
with
and
use
of
Department
of
Defense
separation
incentives
and
Federal
Activities
Inventory
Reform
Act
of
1998.
The
defense
financial
manager
should
also
be
familiar
with
programs
that
impact
manpower
levels,
such
as
the
Commercial
Activities
Program.
Copyright
0
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
1.2.1
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
ADDITIONAL
INFORMATION/REFERENCES
1.2.2
Reference
OMB
Circular
A-11,
Section
32,
Reporting
on
Employment
and
Personnel
Compensation
OMB
Circular
A-76
Performance
of
Commercial
Activities
DoDI
5010.37
Efficiency
Review,
Position
Management,
and
Resource
Request
Determination
11/17/1987
DoDI
1400.32
Civilian
Workforce
Contingency
and
Emergency
Planning
4/24/1995
DoDI
1100.19
Wartime
Manpower
Mobilization
Planning
Policies
and
Procedures
DoDI
4000.19
Interservice
and
Intragovernmental
Support
Agreements
8/9/1995
DoDD
1404.10
DoD
Civilian
Expeditionary
workforce
DoDD
1205.18
FTS
to
Reserve
Components
P.L.
105-270
Federal
Activity
Inventory
Reform
Act
of
1998
18
USC
208
Acts
Affecting
a
Personal
Financial
Interest
5
CFR
2635
Standards
of
Ethical
Conduct
for
Employees
of
the
Executive
Branch
Location
https://www.whitehouse.gov/sites/default/files/omb/
assets/all_current_year/s32.pdf
https://www.whitehouse.gov/sites/default/files/
omb/assets/omb/circulars/a07
6
/
a
76_incl_tech_
correction.pdf
http://dtic.mil/cgi-bin/GetTRDoc?AD=ADA376648
http://dtic.
mil/whs/directives/corres/pdf/140032p.
pdf
http://dtic.
mil/cgi-bin/GetTRDoc?AD=ADA267851
http://dtic.mil/whs/directives/corres/pdf/400019p.
pdf
http://dtic.mil/whs/directives/corres/pdf/140410p.
pdf
http://dtic.
mil/whs/directives/corres/pdf/120518p.
pdf
https://www.gpo.gov//fdsys/pkg/PLAW-105pub1270/pdf/
PLAW-105pub1270.pdf
https://oge.gov/web/oge.nsf/Statutes
https://www.law.cornell.edu/cfr/text/5/part-2635
U.S.
Office
of
Government
Ethics
https://oge.gov/
Joint
Ethics
Regulation
http://ogc.osd.mil/defense_ethics/
FMR
Volume
2A,
Chapter
1
General
Information
http://comptroller.defense.gov/FMR/
Note:
VVebsite
addresses
current
as
of
publication.
Copyright
©
2000,
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
KNOWLEDGE
CHECK
Instructions:
Answer
each
question
below.
Check
your
answers
against
the
answer
key.
1.
Where
can
the
rules
for
calculating
FTE
employment
be
found?
2.
What
term
is
used
to
refer
to
the
totality
of
units
in
a
DoD
component?
3.
What
term
is
used
to
refer
to
the
authorized
and
programmed
strength
at
the
end
of
the
fi
scal
year
for
the
active
forces,
the
Selected
Reserve,
and
appropriated
-fund
civilian
employees
in
the
FYDP?
4.
What
process
involves
assembling,
organizing,
and
using
manpower
and
material
resources
in
preparation
for
war
or
other
emergency?
5.
What
is
the
maximum
number
of
days
that
units
of
the
Selected
Reserve
and
members
of
the
Individual
Ready
Reserve
may
be
ordered
to
active
duty
(other
than
for
training)
without
the
consent
of
Congress?
6.
What
is
the
maximum
number
of
members
of
the
Selected
Reserve
and
the
Individual Ready
Reserve
who
may
be
on
duty
at
any
one
time?
Of
these,
what
is
the
maximum
number
who
may
be
members
of
the
Individual
Ready
Reserve?
7.
What
term
is
used
to
describe
a
civilian
who
could
be
deployed
to
a
crisis
area?
8.
What
types
of
activities
are
excluded
from
competition
under
OMB
Circular
A-76?
9.
How
frequently
must
Federal
agencies
compile
lists
of
activities
that
are
not
inherently
Governmental?
10.
What
kind
of
activity
is
so
intimately
related
to
the
public
interest
as
to
mandate
performance
by
Federal
employees?
11.
What
is
one
of
the
exceptions
to
the
ban
on
gifts
from
outside
sources?
1.2.3
Copyright
©
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
page
intentionally
left
blank
1.2.4
Copyright
0
2000,
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Strength
Levels
as
of
November
2017
MILLIONS
OF
PEOPLE)
1.4
1,335
M
1.2
1
815.119
0.8
727,381
0.6
0.4
0.2
0
Active
Duty
Forces
Ready
and
Civilian
Work
Stand
-By
Force
Reserves
INTRODUCTION
TO
DEFENSE
MANPOWER
MANAGEMENT
The
mission
of
the
Department
of
Defense
(DOD)
is
provide
a
lethal
Joint
Force
to
defend
the
security
of
our
country
and
sustain
American
influence
abroad.
Reporting
to
the
Secretary
of
Defense
are
three
military
departments
(Army,
Navy,
and
Air
Force)
and
19
defense
agencies.
The
four
Armed
Services
(Army,
Navy,
Air
Force,
and
Marine
Corps)
are
subordinate
to
their
military
departments.
The
military
departments
are
responsible
for
recruiting,
training,
and
equipping
their
forces,
but
operational
control
of
those
forces
is
assigned
to
one
of
the
unified
Combatant
Commands.
The
United
States
Coast
Guard
is
also
part
of
our
US
Armed
Forces
and
also
our
Armed
Services.
It
is
aligned
under
the
Department
of
Homeland
Security;
however,
by
statute,
it
can
be
transferred
to
the
operational
control
of
the
Department
of
Defense
in
wartime.
Copyright
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
1.2.5
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Manpower
Management
The
processes
for
determining
manpower
requirements
for
budgetary
purposes
and
reporting
manpower
strengths
to
OMB
Defense
Manpower
Management
Defined
Defense
manpower
management,
as
used
in
financial
management,
refers
to
the
processes
of
determining
manpower
requirements
for
budgetary
purposes
and
reporting
manpower
strengths
to
the
OMB.
Manpower
Concentrations
For
study
purposes,
Defense
Manpower
Resources
Management
is
separated
into
four
concentrations:
•
Manpower
Structure
•
Mobilization
and
Crisis
Issues
•
Restructuring
Initiatives
Federal
Work
Force
Restructuring
Act
of
1994
Federal
Activities
Inventory
Reform
Act
of
1998
Commercial
Activities
—OMB
Circular
A-76
•
Ethical
Standards
1.2.6
Copyright
©
2000,
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Manpower
Structure
The
Under
Secretary
of
Defense
(Personnel
and
Readiness)
issues
guidance
annually
for
the
Services
to
use
in
preparation
and
administration
of
their
military
and
civilian
manpower
programs.
Within
the
strengths
assigned
by
the
Secretary
of
Defense,
each
service
programs
manpower
using
the
following
guidelines:
•
The
fi
rst
priority
for
programming
manpower
is
major
Combat
Commands
based
on
the
Joint
Chiefs
of
Staff
guidance.
•
Remaining
forces
are
manned,
within
approved
total
strengths,
to
support
combat
forces.
•
Civilian
requirements
are
based
on
planning
and
workload
factors
at
the
minimum
necessary
to
accomplish
the
required
tasks.
•
Manpower
requirements
for
an
area
that
requires
both
military
and
civilian
personnel
are
projected
as
a
total.
•
Civilian
personnel
can
be
used
only
in
positions
that
do
not
require
military
incumbents
by
reasons
of
law,
training,
security,
discipline,
rotation,
or
combat
readiness.
•
Indigenous
personnel
are
utilized
to
the
maximum
extent
practical
consistent
with
security
and
readiness.
For
example,
indirect
Hires
are
indigenous
personnel
hired
by
the
foreign
Government
to
support
the
mission
of
the
DoD.
1.2.7
Copyright
@
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
TABLE
1.2.1
-MANPOWER
MANAGEMENT
TERMINOLOGY
Term
Definition
Actual
Strength
The
number
of
personnel
in
—or
projected
to
be
in
—an
organization
or
account
at
a
specified
point
in
time.
Assigned
Strength
Actual
strength
of
an
entire
service,
not
necessarily
equal
to
combined
unit
actual
strengths
because
individuals
may
be
assigned
but
not
joined.
Authorized
Strength
The
total
strength
authorized
by
Congress
(for
internal
service
applications
only).
Authorized
strength
may
be
used
synonymously
with
documented
strength.
Average
Strength
The
arithmetic
mean
strength
for
a
specific
time
span.
The
average
strength
for
1
year
is
equivalent
to
work
years.
DoD
Civilian
VVork
Force
U.S.
citizens
or
foreign
nationals
hired
directly
or
indirectly
to
work
for
DoD,
paid
from
appropriated
or
non
-appropriated
funds
under
permanent
or
temporary
appointment.
This
includes
employees
filling
full-time,
part-time,
intermittent,
or
on
-call
positions.
Specifically
excluded
are
all
Government
contractor
employees.
End
Strength
Strength
at
the
end
of
a
fiscal
year
is
synonymous
with
end
-year
strength.
Single
point
strengths
for
other
points
in
time
must
be
specified,
such
as
end
first-quarter
strength.
Future
-Year
Defense
Program
(FYDP)
The
official
report
(database)
that
summarizes
the
resources
provided
to
DoD.
The
FYDP
identifies
funding
for
each
appropriation,
manpower
authorization
and
program,
and
selected
types
of
unit
or
equipment
authorizations
by
resource
management
packages
called
program
elements.
Force
Structure
The
totality
of
units
in
a
DoD
component.
Manpower
Programming
The
process
of
compiling
and
projecting
future
manpower
requirements;
documenting
these
requirements;
integrating
them
into
the
overall
planning,
programming,
and
budgeting
process;
and
translating
them
into
a
form
that
provides
a
basis
for
personnel
procurement,
training,
and
assignment.
Peacetime
Strength
The
authorized
and
programmed
strength
at
the
end
of
the
fiscal
year
for
active
forces,
the
Selected
Reserve
(to
include
drilling
reservists,
military
technicians,
and
active
Guard
and
Reserve),
and
appropriated
-fund
civilian
employees
in
the
FYDP.
1.2.8
Copyright
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Mobilization
&
Crisis
Issues
•
The
DoD
Manpower
Utilization
Policy
•
Mobilization
•
The
DoD
Total
Force
Policy
•
The
DoD
Master
Mobilization
Plan
(MMP)
MOBILIZATION
AND
CRISIS
ISSUES
The
ability
to
make
the
transition
from
peacetime
manning
levels
to
wartime
manpower
demands
and
the
ability
to
provide
fi
ller
and
replacement
personnel
over
the
course
of
a
conflict
are
critical
to
successful
resolution
of
a
crisis.
DoD
Manpower
Utilization
Policy
During
mobilization
or
wartime,
the
DoD
manpower
utilization
policy
is
based
on:
•
Terminating
or
deferring
activities
not
essential
to
the
war
effort
in
order
to
permit
the
reallocation
of
personnel
to
higher
priority
tasks.
•
Assigning
military
personnel
only
to
those
jobs
that
contribute
to
the
war
unless:
Military
incumbency
is
required
by
law.
Possessing
military
-unique
skills
or
experience
is
essential
for
successful
performance
of
required
duties.
Military
authority
or
discipline
is
requisite
to
the
position.
Alternative
manpower
is
not
available.
Mobilization
During
mobilization,
defense
leaders
have
to
consider
the
current
makeup
of
civilian
workforce
and
the
impact
of
mobilization
on
the
depth
of
that
workforce.
Plans
for
the
civilian
workforce
during
contingencies
and
emergencies
shall
include
assessments
and
alternatives
for
the
following:
•
The
loss
of
civilian
employees
who
are
reservists
or
retired
from
military
service
who
may
be
recalled
to
active
duty.
•
The
loss
of
civilian
employees
who
may
be
drafted
into
military
service.
1.2.9
Copyright
C)
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
In
addition
an
expansion
of
military
members
through
mobilization
may
require
an
increase
in
the
civilian
workforce
strength.
Installation
planning
for
civilian
workforce
expansion
and
recruitment
during
contingencies
and
emergencies
shall
include
consideration
of:
•
The
availability
and
use
of
DoD
civilian
retirees.
•
The
placement
of
military
retirees
not
normally
subject
to
military
recall
(those
over
age
60
or
prevented
from
recall
by
serious
disability).
•
The
borrowing
of
employees
from
other
Federal
agencies.
•
The
use
of
contractors.
•
The
use
of
overtime
and
temporary
employees.
DoD
Total
Force
Policy
Under
the
DoD
Total
Force
Policy,
many
military
functions
not
required
during
peacetime
are
assigned
to
the
Reserve
components.
The
execution
of
contingency
operations
may
require:
•
The
mobilization
of
all
or
part
of
the
reserve
components
to
bring
the
force
structure
to
the
levels
required
for
a
particular
conflict.
•
The
augmentation
of
active
and
activated
reserve
units
by
non
-unit
reservists,
recalled
retirees,
volunteers,
and
draftees.
Some
civilians
who
perform
wartime
military
functions
in
peacetime
will
remain
as
emergency
-essential
(E
-E)
employees,
but
most
will
be
replaced
in
theater
by
active
-duty
military
personnel
or
recalled
reservists.
The
military
services
and
Defense
agencies
plan
for
military
force
buildup,
deployment,
employment,
and
sustainment
on
the
assumption
that
an
adequate
civilian
workforce
will
be
available.
Increases
in
peacetime
work
levels
will
require
increased
productivity,
increased
hours
of
work,
and/or
increased
numbers
of
civilian
employees.
Master
Mobilization
Plan
(MMP)
Mobilization
is
the
process
of
assembling,
organizing,
and
using
manpower
and
material
resources
in
preparation
for
war
or
other
emergency.
The
mobilization
process
can
help
deter
war
as
well
as
enhance
warfighting
capability.
The
DoD
MMP
prescribes
mobilization
policies,
authorities,
and
responsibilities
within
DoD.
1.2.10
Copyright
*2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Presidential
Authority
to
Activate
Reserve
Forces
Title
10
USC
12304
gives
the
President
authority
to
activate
reserve
forces,
without
the
consent
of
Congress,
and
order
to
active
duty
(other
than
for
training)
for
not
more
than
365
days:
Selected
Reserve
Individual
Ready
Reserve
Limit
of
200,000
Selected
Reserve
and
Individual
Ready
Reserve
on
active
duty
and
not
more
than
30,000
Individual
Ready
Reserve
Presidential
Authority
to
Activate
Reserve
Forces
10
USC
12304
gives
the
President
authority
to
order
to
active
duty
Selected
Reserve
and
Ready
Reserves:
•
When
the
President
determines
that
it is
necessary
to
augment
the
active
forces
for
any
operational
mission
or
emergency
involving
the
use
or
threatened
use
of
a
weapon
of
mass
destruction,
terrorist
attack,
or
a
threatened
terrorist
attack
in
the
United
States,
the
President
may
authorize
the
Secretary
of
Defense
and
the
Secretary
of
Homeland
Security
(for
the
Coast
Guard),
without
the
consent
of
Congress,
to
order
to
active
duty
(other
than
for
training)
for
not
more
than
365
days
as
follows:
-
Any
unit
of
the
Selected
Reserve.
-
Any
member
of
the
Individual
Ready
Reserve.
•
Not
more
than
200,000
members
of
the
Selected
Reserve
and
the
Individual
Ready
Reserve
may
be
on
active
duty
under
this
section
at
any
one
time,
of
which
not
more
than
30,000
may
be
members
of
the
Individual
Ready
Reserve.
1.2.11
Copyright
CO
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Civilian
Employees
During
a
Crisis
Situation
•
Crisis
Situation
•
Emergency
Essential
(EE)
Non
-Combat
Essential
(NCE)
Capability
-Based
Volunteer
(CBV)
Capability
-Based
Former
Employee
Volunteer
Corps
•
Key
Employees
Civilian
Employees
During
Crisis
Situations
The
following
definitions
apply
to
civilians
during
crisis
situations
based
on
DoDD
1404.10,
23
January
2009,
DoD
Civilian
Expeditionary
Workforce.
•
Crisis
Situation.
A
crisis
situation
is
a
civil
insurrection,
civil
war,
terrorism,
wartime,
or
hostile
condition
that
threatens
physical
harm
or
imminent
danger
to
the
health
or
well
being
of
the
E
-E
civilian
employee.
•
Emergency
Essential
(E
-E).
A
position
-based
designation
to
support
the
success
of
combat
operations
or
the
availability
of
combat
-essential
systems
in
accordance
with
10
USC
1580(e)
and
will
be
designated
as
key
in
accordance
with
Paragraph
4c(5).
A
person
occupying
an
E
-E
position
could
be
deployed
to
a
crisis
area.
•
Non
-Combat
Essential
(NCE).
A
position
-based
designation
to
support
the
expeditionary
requirements
in
other
than
combat
or
combat
support
situations
and
will
be
designated
as
Key
in
accordance
with
Paragraph
4d(5).
•
Capability
-Based
Volunteer
(CBV).
An
employee
who
may
be
asked
to
volunteer
for
deployment,
remain
behind
after
other
civilians
have
evacuated,
or
backfill
other
DoD
civilians
who
have
deployed
to
meet
expeditionary
requirements
in
order
to
ensure
that
critical
expeditionary
requirements
that
may
fall
outside
or
within
the
scope
of
an
individual's
position
are
fulfilled.
•
Capability
-Based
Former
Employee
Volunteer
Corps.
A
collective
group
of
former
(including
retired)
DoD
civilian
employees
who
have
agreed
to
be
listed
in
a
database
as
individuals
who
may
be
interested
in
returning
to
Federal
service
as
a
time
-limited
employee
to
serve
expeditionary
requirements
or
who
can
backfill
for
those
serving
other
expeditionary requirements.
When
these
individuals
are
re-employed,
they
shall
be
deemed
CBV
employees.
•
Key
Employees.
DoD
civilian
employees
in
positions
designated
as
E
-E
and/or
NCE
will
be
designated
key
in
accordance
with
DoDD
1200.7.
1.2.12
Copyright
©
2000.
revised
2018
(v20185)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
FTE
Terminology
•
Full
-Time
Permanent
(FTP)
•
Other
Than
Full
-Time
Permanent
(OTFTP)
•
Turnover
Rate
•
Fill
Rate
•
Lapse
Rate
MANPOWER
ESTIMATES
FOR
FINANCIAL
MANAGEMENT/FTE
TERMINOLOGY
Personnel
budget
estimates
are
prepared
in
terms
of
full-time
equivalent
(FTE)
employment,
as
required
in
OMB
Circular
A-11.
FTE
employment
is
the
total
number
of
regular
straight
-time
hours
(compensable
hours,
not
including
overtime
or
holiday
hours)
worked
by
an
employee
divided
by
the
number
of
compensable
hours
applicable
to
each
fi
scal
year.
Annual
leave,
sick
leave,
compensatory
time
off
and
other
approved
leave
categories
are
considered
"hours
worked"
for
purposes
of
defining
FTE
employment
that
is
reported
in
the
personnel
summary.
TABLE
1.2.2
—FULL-TIME
EQUIVALENT
TERMINOLOGY
Term
Definition
Full
-Time
Permanent
(FTP)
A
position
normally
filled
on
a
permanent
basis
and
having
a
regular
schedule.
Example:
Assume
100
positions
Other
Than
Full
-Time
Permanent
(OTFTP)
All
positions
other
than
full-time
permanent,
including
temporary,
part-time,
and
intermittent.
Turnover
Rate
(TR)
Number
of
employees
who
left
positions
during
a
past
year
divided
by
the
number
of
positions.
Example:
Assume
10
personnel
left
from
our
100
positions.
10
/
100
=
10%
turnover
rate
Fill
Rate
(FR)
The
average
number
of
days
between
an
employee
leaving
a
position
and
the
position
being
filled
divided
by
the
workdays
in
a
year.
Example:
Assume
it
takes
65
workdays
from
an
employee
leaving
until
the
position
is
filled
and
there
are
2080
hours
(260
workdays)
in
the
year:
65
/
260
=
25%
fill
rate
Lapse
Rate
(LR)
Percentage
of
the
year
a
vacancy
occurs
(Turnover
Rate)
times
(Fill
Rate)
=
Lapse
Rate
Example:
(10%
turnover
rate)
x
(25%
fi
ll
rate)
=
2.5%
lapse
rate
Number
of
Positions
to
Budget
2.5%
of
the
100
positions
are
vacant
during
the
year,
therefore
100
—(100
x
2.5%)
=
100
—
2.5
=
97.5
positions
to
budget
1
2
13
Copyright
@
2000.
revised
2018
(v201
8a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
DoD
Separation
Incentives
5
USC
9902(f)
•
Permanent
DoD
Authority
•
Authorizes
buyout
up
to
$40,000*
or
early
retirement
or
both
•
Voluntary
Separation
Incentive
Pay
(VSIP)
•
Voluntary
Early
Retirement
Authority
(VERA)
•
This
lint
is
on
effect
unel
01
0001
toti.3012021
DEPARTMENT
OF
DEFENSE
SEPARATION
INCENTIVES
Title
5
of
the
United
States
Code,
Section
9902(f),
as
enacted
by
section
1101
of
P.L.
108-136,
gives
the
Secretary
of
Defense
permanent
authority
to
establish
programs
under
which
employees
may
be
eligible
for
voluntary
early
retirement
or
be
offered
separation
incentive
pay
(commonly
called
buyouts)
or
both.
This
authority
may
be
used
to
reduce
the
number
of
personnel
employed
by
the
Department
of
Defense
or
to
restructure
the
workforce
to
meet
mission
objectives
without
reducing
the
overall
number
of
personnel.
The
latter
point
is
particularly
significant
since
initial
buyout
legislation
required
the
elimination
of
a
full-time
equivalent
position
for
every
position
vacated
through
a
buyout.
That
is
no
longer
the
case.
The
buyout
program
is
known
as
the
Voluntary
Separation
Incentive
Pay
(VSIP)
program,
and
the
program
for
early
retirement
is
known
as
Voluntary
Early
Retirement
Authority
(VERA).
An
individual can
be
subject
to
either
one
or
both
of
these
programs
at
the
time
of
separation
from
active
service.
The
Department
of
Defense
is
permitted
no
more
than
25,000
buyout
separations
per
year
under
this
authority,
but
this
limitation
does
not
include
any
buyout
separations
subject
to
Base
Realignment
and
Closure
action
or
for
non
-appropriated
fund
employees.
5
USC
9902(f)
requires
that
buyout
payments
(the
lesser
of
$40,000*
or
the
amount
of
the
employee's
severance
pay)
be
paid
from
amounts
available
for
the
employee's
pay,
and
generally,
be
fully
repaid
if
the
employee
rejoins
the
Federal
Government
within
fi
ve
years
of
separation.
An
employee
accepting
a
buyout
cannot
be
re-employed
by
DoD
for
12
months
after
receiving
the
incentive
pay
unless
the
Secretary
of
Defense
approves
an
exception.
*Note:
This
limit
is
in
effect
until
at
least
9/30/2021.
1.2.14
Copyright
OD
2000,
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Federal
Activities
Inventory
Reform
Act
of
1998
•
Lists
Required
•
Annual
list
of
activities
performed
by
executive
agency
that
are
not
inherently
governmental
functions.
•
Public
Availability
of
Lists
•
Director
of
the
Office
of
Management
and
Budget
shall
promptly
publish
in
the
Federal
Register
a
notice
that
the
list
is
available
to
the
public.
Federal
Activities
Inventory
Reform
Act
of
1998
Competition
Required
The
head
of
the
executive
agency
shall
use
a
competitive
process
to
select
the
source.
Realistic
and
Fair
Cost
Comparisons
For
the
purpose
of
determining
whether
to
contract,
the
head
of
the
executive
agency
shall
ensure
that
all
costs
are
realistic
and
fair.
FEDERAL
ACTIVITIES
INVENTORY
REFORM
ACT
OF
1998
Annual
Lists
of
Government
Activities
Not
Inherently
Governmental
in
Nature
Section
2
of
the
Federal
Activities
Inventory
Reform
Act
of
1998
specifies
the
process
to
be
followed
to
identify
activities
that
are
not
inherently
Governmental
and
establishes
a
fair
system
of
competition
for
the
activities.
This
process
is
described
below.
Lists
required.
Not
later
than
the
end
of
the
third
quarter
of
each
fi
scal
year,
the
head
of
each
Executive
agency
shall
submit
to
the
Director
of
OMB
a
list
of
activities
performed
by
Federal
Government
sources
for
the
Executive
agency
that,
in
the
judgment
of
the
head
of
the
Executive
agency,
are
not
inherently
Governmental
functions.
The
entry
for
an
activity
on
the
list
shall
include
the
following:
•
The
fiscal
year
for
which
the
activity
first
appeared
on
a
list
prepared
under
this
section.
•
The
number
of
full-time
employees
(or
its
equivalent)
necessary
for
the
performance
of
the
activity
by
a
Federal
Government
source.
•
The
name
of
a
Federal
Government
employee
responsible
for
the
activity
from
whom
additional
information
about
the
activity
may
be
obtained.
OMB
Review
and
Consultation.
The
Director
of
OMB
shall
review
the
Executive
agency's
list
for
a
fi
scal
year
and
consult
with
the
head
of
the
Executive
agency
regarding
the
content
of
the
final
list
for
that
fi
scal
year.
PUBLIC
AVAILABILITY
OF
LISTS.
1.
Publication.
Upon
the
completion
of
the
OMB
review
and
consultation
regarding
a
list
of
an
Executive
agency:
The
head
of
the
Executive
agency
shall
promptly
transmit
a
copy
of
the
list
to
Congress
and
make
the
list
available
to
the
public.
The
Director
of
OMB
shall
promptly
publish
in
the
Federal
Register
a
notice
that
the
list
is
available
to
the
public.
Copyright
©
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
1.2.15
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
2.
Changes.
If
the
list
changes
after
the
publication
of
the
notice
as
a
result
of
the
resolution
of
challenge,
the
head
of
the
Executive
agency
shall
promptly:
Make
each
such
change
available
to
the
public
and
transmit
a
copy
of
the
change
to
Congress.
Publish
in
the
Federal
Register
a
notice
that
the
change
is
available
to
the
public.
Competition
Required
Within
a
reasonable
amount
of
time
after
the
date
on
which
a
notice
of
the
public
availability
of
a
list
is
published,
the
head
of
the
Executive
agency
concerned
shall
review
the
activities
on
the
list.
Each
time
the
head
of
the
Executive
agency
considers
contracting
with
a
private
-sector
source
for
the
performance
of
such
an
activity,
the
head
of
the
Executive
agency
shall
use
a
competitive
process
to
select
the
source
(except
as
may
otherwise
be
provided
in
a
law
other
than
this
act,
an
Executive
order,
regulations,
or
any
Executive
Branch
circular
setting
forth
requirements
or
guidance
that
is
issued
by
competent
Executive
authority).
Realistic
and
Fair
Standard
Competitions
For
the
purpose
of
determining
whether
to
contract
with
a
source
in
the
private
sector
for
the
performance
of
an
Executive
agency
activity
on
the
list
on
the
basis
of
a
comparison
of
the
costs
of
procuring
services
from
such
a
source
with
the
costs
of
performing
that
activity
by
the
Executive
agency,
the
head
of
the
Executive
agency
shall
ensure
that
all
costs
(including
the
costs
of
quality
assurance,
technical
monitoring
of
the
performance
of
such
function,
liability
insurance,
employee
retirement
and
disability
benefits,
and
all
other
overhead
costs)
are
considered
and
that
the
costs
considered
are
realistic
and
fair.
Although
the
Federal
Workforce
Restructuring
Act
(FWRA),
which
expired
on
September
30,
1999,
placed
ceilings
on
Executive
Branch
civilian
employment,
agencies
should
not
convert
the
work
of
their
employees
to
contractors
unless
they
fi
rst
undertake
standard
competitions
that
demonstrate
that
such
a
conversion
is
of
financial
advantage
to
the
Government.
In
addition
agencies
should
ensure
that
reductions
in
accordance
with
the
FWRA
are
not
disproportionately
made
in
the
areas
of
students
or
employees
with
disabilities
and
their
aides.
1.2.16
Copyright
©
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Activities
Defined
A-76
defines
activities
in
two
categories:
•
Commercial
Activity
•
Inherently
Governmental
Activity
L
tk;X-
,
,
7
r6V:K
114,
The
Act
of
Governing
-
Monetary
Transactions
and
Entitlements
Types
of
Activities
OMB
CIRCULA
-76
CLASSIFIES
ACTIVITIES
IN
TWO
CATEGORIES:
•
Commercial
Activity.
A
commercial
activity
is
the
process
resulting
in
a
product
or
service
that
is
or
could
be
obtained
from
a
private
sector
source.
Agency
missions
may
be
accomplished
through
commercial
facilities
and
resources,
Government
facilities
and
resources,
or
mixes
thereof,
depending
upon
the
product,
service,
type
of
mission,
and
equipment
required.
•
Inherently
Governmental
Activity.
An
inherently
Governmental
activity
is
one
that
is
so
intimately
related
to
the
public
interest
as
to
mandate
performance
by
Federal
employees.
Activities
that
meet
these
criteria
are
not
in
competition
with
commercial
sources,
are
not
generally
available
from
commercial
sources,
and
are
not
subject
to
OMB
Circular
A-76.
INHERENTLY
GOVERNMENTAL
FUNCTIONS
NORMALLY
FALL
INTO
TWO
CATEGORIES:
•
The
Act
of
Governing
(the
discretionary
exercise
of
Government
authority).
Examples
include
criminal
investigations,
prosecutions,
and
other
judicial
functions;
management
of
Government
programs
requiring
value
judgments,
as
in
direction
of
the
national
defense;
management
and
direction
of
the
armed
services;
activities
performed
exclusively
by
military
personnel
who
are
subject
to
deployment
in
a
combat,
combat
support,
or
combat
service
support
role;
conduct
of
foreign
relations;
selection
of
program
priorities;
direction
of
Federal
employees;
regulation
of
the
use
of
space,
oceans,
navigable
rivers,
and
other
natural
resources;
direction
of
intelligence
and
counter
-intelligence
operations;
and
regulation
of
industry
and
commerce,
including
food
and
drugs.
•
Monetary
Transactions
and
Entitlements.
Examples
include
tax
collection
and
revenue
disbursements,
control
of
the
Treasury
accounts
and
money
supply,
and
the
administration
of
public
trusts.
The
following
is
an
illustrative
list
considered
to
be
inherently
Governmental
functions:
•
The
direct
conduct
of
criminal
investigations.
•
The
control
of
prosecutions
and
performance
of
adjudicatory
functions
(other
than
those
relating
to
arbitration
or
other
methods
of
alternative dispute
resolution).
•
The
command
of
military
forces,
especially
the
leadership
of
military
personnel
who
are
members
of
the
combat,
combat
support,
or
combat
service
support
role.
1.2.17
Copyright
0
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
•
The
conduct
of
foreign
relations
and
the
determination
of
foreign
policy.
•
The
determination
of
agency
policy,
such
as
determining
the
content
and
application
of
regulations,
among
other
things.
•
The
determination
of
Federal
program
priorities
or
budget
requests.
•
The
direction
and
control
of
Federal
employees.
•
The
direction
and
control
of
intelligence
and
counter
-intelligence
operations.
•
The
selection
or
non
-selection
of
individuals
for
Federal
Government
employment.
•
The
approval
of
position
descriptions
and
performance
standards
for
Federal
employees.
•
The
determination
of
what
Government
property
is
to
be
disposed
of
and
on
what
terms
(although
an
agency
may
give
contractors
authority
to
dispose
of
property
at
prices
within
specified
ranges
and
subject
to
other
reasonable
conditions
deemed
appropriate
by
the
agency).
•
In
Federal
procurement
activities
with
respect
to
prime
contracts:
The
determination
of
what
supplies
or
services
are
to
be
acquired
by
the
Government
(although
an
agency
may
give
contractors
authority
to
acquire
supplies
at
prices
within
specified
ranges
and
subject
to
other
reasonable conditions
deemed
appropriate
by
the
agency).
The
participation
as
a
voting
member
on
any
source
selection
boards.
The
approval
of
any
contractual
documents,
to
include
documents
defining
requirements,
incentive
plans,
and
evaluation
criteria.
The
awarding
of
contracts.
The
administration
of
contracts
(including
ordering
changes
in
contract
performance
or
contract
quantities,
taking
action
based
on
evaluations
of
contractor
performance,
and
accepting
or
rejecting
contractor
products
or
services).
The
termination
of
contracts.
The
determination
of
whether
contract
costs
are
reasonable,
allocable,
and
allowable.
1.2.18
Copyright
'ID
2000,
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
A-76
Cost
Competition
Process
U.
S.
Government
Policy
-
Empowers
Federal
managers
to
make
sound
and
justifiable
business
decisions.
Not
designed
to
simply
contract
out,
but
to:
-
Balance
the
interests
of
the
parties
to
a
make
or
buy
cost
comparison.
-
Provide
a
level
playing
field
in
a
public
and
private
sector
competition.
•
Encourage
competition
and
choice
in
the
management
and
performance
of
commercial
activities.
It
is
the
policy
of
the
U.S.
Government
to:
•
Achieve
economy/enhance
productivity
•
Retain
inherently
government
functions
in-house
•
Rely
on
commercial
sector
OMB
CIRCULAR
A
-76
—PERFORMANCE
OF
COMMERCIAL
ACTIVITIES
OMB
Circular
A-76,
Performance
of
Commercial
Activities,
establishes
Federal
policy
regarding
the
performance
of
commercial
activities
and
implements
the
statutory
requirements
of
the
Federal
Activities
Inventory
Reform
Act
of
1998,
P.L.
105-270.
The
supplement
to
this
Circular
sets
forth
the
procedures
for
determining
whether
commercial
activities
should
be
performed
under
contract
with
commercial
sources
or
in-house
using
Government
facilities
and
personnel.
OMB
Circular
A-76
is
designed
to
empower
Federal
managers
to
make
sound
and
justifiable
business
decisions.
It
is
not
designed
to
simply
contract
out;
rather,
it
is
designed
to:
•
Balance
the
interests
of
the
parties
to
a
make
or
buy
cost
comparison.
•
Provide
a
level
playing
fi
eld
in
a
public
and
private
sector
competition.
•
Encourage
competition
and
choice
in
the
management
and
performance
of
commercial
activities.
It
is
the
policy
of
the
U.S.
Government
to:
•
Achieve
Economy
and
Enhance
Productivity.
Competition
enhances
quality,
economy,
and
productivity.
Whenever
commercial
-sector
performance
of
a
Government
-operated
commercial
activity
is
permissible,
in
accordance
with
OMB
Circular
A-76
and
its
supplement,
comparison
of
the
cost
of
contracting
and
the
cost
of
in-house
performance
shall
be
performed
to
determine
who
will
do
the
work.
When
conducting
standard
competitions,
agencies
must
ensure
that
all
costs
are
considered
and
that
these
costs
are
realistic
and
fair.
•
Retain
Governmental
Functions
In
-House.
Certain
functions
are
inherently
Governmental
in
nature,
being
so
intimately
related
to
the
public
interest
as
to
mandate
performance
only
by
Federal
employees.
These
functions
are
not
in
competition
with
the
commercial
sector;
therefore,
these
functions
shall
be
performed
by
Government
employees.
•
Rely
on
the
Commercial
Sector.
The
Federal
Government
shall
rely
on
commercially
available
sources
to
provide
commercial
products
and
services.
In
accordance
with
the
provisions
of
this
circular
and
its
supplement,
the
Government
shall
not
start
or
carry
on
any
activity
to
provide
a
commercial
product
or
service
if
the
product
or
service
can
be
procured
more
economically
from
a
commercial
source.
Copyright
0
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
1.2.19
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Reliable
Cost
and
Performance
Information
Reliable
cost
and
performance
information
is
crucial
to
the
effective
management
of
Government
operations
and
to
the
conduct
of
competitions
between
public
or
private
-sector
offerors.
Listed
below
are
a
number
of
initiatives
to
generate
cost
and
performance
information:
•
The
Chief
Financial
Officers
(CFO)
Act
of
1990
includes,
among
the
functions
of
Chief
Financial
Officers,
"the
development
and
reporting
of
cost
information"
and
"the
systematic
measurement
of
performance."
This
includes
performance
by
in-house,
contract,
or
Interservice
Support
Agreement
(ISSA)
resources.
•
The
Government
Performance
and
Results
Act
(GPRA)
of
1993
mandates
performance
measurement
by
Federal
agencies.
•
In
1995,
the
Federal
Accounting
Standards
Advisory
Board
(FASAB)
recommended
standards
for
managerial
cost
accounting,
which
were
approved
by
the
Director
of
OMB,
the
Secretary
of
the
Treasury,
and
the
Comptroller
General.
These
standards
were
issued
as
the
Statement
of
Federal
Financial
Accounting
Standards
Number
4
(SFFAS
No.
4),
"Managerial
Cost
Accounting
Standards
for
the
Federal
Government."
The
Supplement
to
OMB
A-76
relies
on
the
managerial
cost
accounting
and
performance
standards
established
in
support
of
the
CFO
Act,
GPRA,
and
the
Federal
Accounting
Standards,
as
they
are
developed
and
implemented.
Cost
and
performance
information
developed
for
standard
competitions
required
by
the
circular
and
this
supplement
should
be
drawn
from
the
database
established
by
these
standards
and
adjusted
as
appropriate.
1.2.20
Copyright
2000,
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
TABLE
1.2.3-0MB
CIRCULAR
A-76
KEY
ELEMENTS
Key
Elements
Explanation
Conversion
to
Contract
A
conversion
to
contract
is
the
changeover
of
an
activity
from
Government
performance
to
performance
under
contract
by
a
commercial
source.
Conversion
to
In-house
A
conversion
to
in-house
is
the
changeover
of
an
activity
from
performance
under
contract
to
Government
performance.
Commercial
Source
A
commercial
source
is
a
business
or
other
non
-Federal
activity
located
in
the
United
States,
its
territories
and
possessions,
the
District
of
Columbia,
or
the
Commonwealth
of
Puerto
Rico,
which
provides
a
commercial
product
or
service.
Cost
Comparison
A
cost
comparison
is
the
process
of
developing
an
estimate
of
the
cost
of
Government
performance
of
a
commercial
activity
and
comparing
it,
in
accordance
with
the
requirements
of
the
Supplement,
to
the
cost
to
the
Government
for
contract
performance
of
the
activity.
Most
Efficient
Organization
(MEO)
The
MED
refers
to
the
Government's
in-house
organization
to
perform
a
commercial
activity.
It
may
include
a
mix
of
Federal
employees
and
contract
support.
It
is
the
basis
for
all
Government
costs
entered
on
the
Cost
Comparison
Form.
The
ME0
is
the
product
of
the
Management
Plan
and
is
based
upon
the
Performance
Work
Statement
(PWS).
Performance
Work
Statement
(PWS)
A
PWS
is
a
statement
of
the
technical,
functional,
and
performance
characteristics
of
the
work
to
be
performed,
identifies
essential
functions
to
be
performed,
and
determines
performance
factors,
including
the
location
of
the
work,
the
units
of
work,
the
quantity
of
work
units,
and
the
quality
and
timeliness
of
the
work
units.
It
serves
as
the
scope
of
work
and
is
the
basis
for
all
costs
entered
on
the
Cost
Comparison
Form.
1.2.21
Copyright
0
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
AB
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
1.2.22
OMB
Circular
A-76
Cost
Competition
Process
CONGRESS
NOTIFIED
ilst
and
Next
In
Last
SteD)
Contract
Awarded
or
MEG
Implemented
Request
Study
Contract
Award
Study
Admin
Appeals
Contract
Develop
ME0
Complete
Independent
Decision
Review
Start
Cost
Study
Comparison
Complete
Solicitation
PWS
Issued
A-76
Cost
Competition
Process
Management
Study
Management
Study:
o
Is
Mandatory.
o
Identifies
the
most
efficient
and
cost-effective
in-house
organization
for
accomplishing
the
Performance
Work
Statements
(the
MEO).
The
MEO
is
the
basis
of
the
government
estimate.
Commercial
Activities
(OMB
Circular
A-76
and
DoDI
4100.33)
Promoting
the
use
of
commercial
activities
(CA)
is
one
approach
to
improving
the
efficiency
of
Government.
OMB
Circular
A-76
establishes
Federal
policy
regarding
the
performance
of
a
CA.
The
supplement
establishes
the
procedures
for
determining
whether
a
CA
should
be
performed
under
contract
with
commercial
sources
or
in-house
using
Government
facilities
or
personnel.
DoDI
4100.33
contains
DoD
procedures
for
CA
in
the
United
States,
its
territories
and
possessions,
the
District
of
Columbia,
and
the
commonwealth
of
Puerto
Rico.
Management
Study
A
management
study
is
performed
to
analyze
completely
the
method
of
operation
necessary
to
establish
the
most
efficient
or
cost-effective
in-house
organization
(MEO)
needed
to
accomplish
the
requirements
in
the
PWS.
The
MEO
must
reflect
only
approved
resources
for
which
the
CA
has
been
authorized.
DoDI
4100.33
states
that:
•
The
CA
management
study
is
mandatory.
The
study
shall
identify
essential
functions
to
be
performed,
and
determine
performance
factors,
organization
structure,
staffing,
and
operating
procedures
for
the
most
efficient
and
cost-effective
in-house
performance
of
the
CA.
•
The
MEO
becomes
the
basis
of
the
Government
estimate
for
the
cost
comparison
with
potential
contractors.
In
this
context,
"efficient,"
or
"cost-effective"
means
that
the
required
level
of
workload
(output),
as
described
in
the
PWS,
is
accomplished
with
as
little
resource
consumption
(input)
as
possible
without
degradation
in
the
required
quality
level
of
products
or
services.
•
DoD
components
have
formal
programs
and
training
for
the
performance
of
management
studies.
•
If
a
CA
provides
critical
or
sensitive
services,
the
management
study
shall
include
a
plan
for
expansion
in
emergency
situations.
•
Early
in
the
management
study,
management
will
solicit
the
views
of
the
employees
in
the
CA
under
review,
and/or
their
representatives
for
their
recommendations
as
to
the
MEO
or
ways
to
improve
the
method
of
operation.
Copyright
©
2000,
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
•
The
management
study
will
be
the
basis
on
which
the
DoD
component
certifies
that
the
Government
cost
estimate
is
based
on
the
most
efficient
and
cost-effective
organization
practicable.
•
DoD
components
shall
establish
procedures
to
ensure
that
the
in-house
operation,
as
specified
in
the
MEO,
is
capable
of
performing
in
accordance
with
the
requirements
of
the
PWS.
•
A
management
study
is
not
required
for
streamlined
cost
-comparisons;
however
MEO
analysis
and
certification
are
required.
A-76
Cost
Competition
Process
Performance
Work
Statements
Performance
Work
Statements
(PWSs)
state
the
technical,
functional,
and
performance
characteristics
of
the
work
to
be
performed.
The
PWS:
•
Serve
as
the
scope
of
work
for
making
cost
comparisons.
•
Outline
performance
standards
that
are
used
to
ensure
a
comparable
level
of
performance
for
both
government
and
contractor
and
provides
a
common
basis
for
evaluation.
Performance
Work
Statement
(PWS)
A
Performance
Work
Statement
(PWS)
states
the
technical,
functional,
and
performance
characteristics
of
the
work
to
be
performed
and
serves
as
a
scope
of
work
for
making
cost
comparisons.
The
PWS
generally
includes
reasonable
performance
standards
that
can
be
used
to
ensure
a
comparable
level
of
performance
for
both
Government
and
contractor
and
a
common
basis
for
evaluation.
Employees
should
be
encouraged
to
participate
in
preparing
or
reviewing
the
PWS.
Each
DoD
component
shall
perform
the
following
tasks:
•
Prepare
PWSs
where
needed.
•
Monitor
the
development
and
use
the
prototype
PWSs.
•
Review
and
initiate
action
to
correct
PWS
discrepancies.
•
Approve
prototype
PWSs
for
component
-wide
use.
•
Coordinate
these
efforts
with
the
other
DoD
components
to
avoid
duplication
and
to
provide
mutual
assistance.
•
Make
available
Government
-owned
facilities,
equipment,
and
real
property
to
contractors,
unless
a
cost
-benefit
analysis
indicates
that
retention
for
use
elsewhere
is
more
cost-effective
for
the
Government.
If
a
cost
-benefit
analysis
is
to
be
performed,
then
the
solicitation
and
the
cost
-comparison
must
reflect
both
options.
Decisions
to
not
provide
facilities,
equipment,
or
real
property
to
contractors
shall
be
made
at
a
level
no
lower
than
the
DoD
component's
central
point
of
contact
office
unless
both
options
are
an
integral
part
of
the
solicitation
and
cost
-comparison.
If
a
Commercial
Activity
(CA)
provides
critical
or
sensitive
services,
the
PWS
shall
include
sufficient
in-house
organization
and
commercial
sources
to
prepare
a
plan
for
expansion
in
emergency
situations.
1.2.23
Copyright
©
2000.
revised
2016
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
1.2.24
A-76
Cost
Competition
Process
Cost
Comparisons
Cost
Comparisons
compare
the
estimated
cost
of
government
performance
of
a
CA
with
the
government's
cost
for
contract
performance
of
the
activity.
The
non
-incumbent
of
the
work
must
beat
the
incumbent
by
10%
of
the
government
personnel
costs.
Cost
Comparisons
A-76
Cost
Competition
Process
Cost
Comparisons
•
All
direct
personnel
costs
must
be
estimated
on
the
basis
of
civilian
performance.
•
Neither
funds
nor
manpower
authorizations
shall
be
removed
from
the
activity
budget
in
anticipation
of
the
outcome
of
a
cost
comparison
study.
A
cost
comparison
involves
developing
an
estimate
of
the
cost
of
Government
performance
of
a
CA
and
comparing
it,
in
accordance
with
the
requirements
of
the
supplement,
to
the
Government's
cost
for
contract
performance
of
the
activity.
Commercial
bids
must
be
at
least
ten
percent
below
in-house
personnel
-related
cost.
If
performance
of
a
CA
by
DoD
personnel
cannot
be
justified
under
national
defense,
non
-availability
of
commercial
source,
or
patient
care
criteria,
then
a
full
-cost
comparison
shall
be
conducted
to
determine
if
performance
by
DoD
employees
is
justified
on
the
basis
of
lower
cost.
Summarized
below
are
the
requirements
for
a
cost
comparison
from
DoDI
4100.33:
•
Because
the
cost
comparison
may
conclude
that
a
commercial
source
could
perform
the
activity
at
a
comparable
cost,
and
therefore,
that
the
work
could
be
done
by
non-military
personnel,
all
direct
personnel
costs
shall
be
estimated
on
the
basis
of
civilian
performance.
•
Funds
shall
be
budgeted
to
cover
either
the
cost
of
the
appropriate
in-house
operation
required
to
accomplish
the
work
or
the
estimated
cost
of
the
contract.
Neither
funds
nor
manpower
authorizations
shall
be
removed
from
the
activity's
budget
in
anticipation
of
the
outcome
of
a
cost
-comparison
study.
Length
of
the
Process
The
time
period
for
a
standard
competition
is
12
months,
extendable
to
18
months
with
approval.
If
the
competition
is
conducted
under
"streamlined"
procedures
the
time
limit
is
90
days,
extendable
another
45
days
with
approval.
The
streamlined
process
may
be
used
if
the
competition
involves
65
full-time
equivalent
employees
or
fewer.
Under
the
streamlined
process,
the
10%
factor
is
not
applicable.
C
(
7
-
Copyright
(fD
2000,
revised
2018
(v20180)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
A-76
Cost
Competition
Process
Announcements
&
Notifications
-
Official
A-76
announcement
and
notifications
-
DoDI
4100.33
Congressional
notification
Employee
notification
Official
A-76
Announcements
and
Notifications
After
the
official
announcement
of
an
A-76
cost
comparison,
the
maximum
time
to
convert
to
an
ME0
is
24
months
for
single
functions
and
48
months
for
multiple
functions.
NOTIFICATIONS
boDI
4100.33
requires
the
following
notifications:
•
Congressional
Notification.
DoD
components
shall
notify
Congress
of
the
intention
to
do
a
cost
comparison
involving
46
or
more
DoD
civilian
personnel.
The
DoD
Component
shall
notify
the
USD(P&R)
of
any
such
intent
at
least
fi
ve
working
days
before
the
congressional
notification.
The
cost
-comparison
process
begins
on
the
date
of
congressional
notification.
•
DoD
Employee
Notification.
DoD
components
shall
consult
with
DoD
civilian
employees
who
will
be
affected
by
the
cost
comparison.
A-76
Moratorium
For
several
years
Congress
has
imposed
a
moratorium
on
public
-private
competitions
under
A-76
or
any
other
regulation.
DoD
is
subject
to
a
government
-wide
moratorium,
most
recently
imposed
by
the
2018
Consolidated
Appropriations
Act,
Division
E,
General
Provision
742.
DoD
is
further
restricted
by
Public
Law
111-84,
Section
325
which
requires
a
report
and
certification
prior
to
any
DoD
public
-private
competitions.
Both
of
these
statutes
are
temporary
in
nature,
and
the
moratorium
could
be
lifted
at
any
time.
The
moratorium
does
not,
however,
apply
to
competitions
under
A-76
where
the
work
is
currently
being
done
by
the
private
sector
and
the
competition
could
potentially
bring
the
work
in-house.
Thus,
private
-public
competitions,
sometimes
known
as
"reverse
A-765",
are
still
authorized.
1.2.25
Copyright
©
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
ETHICS
A
critical
part
of
resource
management
is
understanding
ethical
standards.
Executive
Branch
(DoD)
employees hold
their
positions
as
a
public
trust
and
American
citizens
have
a
right
to
expect
that
all
employees
will
place
loyalty
to
the
Constitution,
laws,
and
ethical
principles
above
private
gain.
Employees
fulfill
that
trust
by
adhering
to
general
principles
of
ethical
conduct
as
well
as
specific
ethical
standards.
The
Department
of
Defense
implements
the
ethics
provisions
of
the
U.S.
Code
and
the
U.S.
Code
of
Federal
Regulations
(5
CFR
2635)
through
the
Joint
Ethics
Regulation,
DoD
5500.7-R.
The
Joint
Ethics
Regulations
governs
the
actions
of
DoD
members.
1.2.26
Ethics
Core
concepts:
•
Employees
shall
not
use
public
office
for
private
gain.
•
Employees
shall
act
impartially
and
not
give
preferential
treatment
to
any
private
organization
or
individual.
Ethics
Core
concepts:
•
Employees
must
strive
to
avoid
any
action
that
would
create
the
appearance
that
they
are
violating
the
law
or
ethical
standards.
5
CFR
2635.101
states
14
general
principles
that
broadly
define
the
obligations
of
public
service.
Underlying
these
14
principles
are
two
core
concepts:
•
Employees
shall
not
use
public
office
for
private
gain.
•
Employees
shall
act
impartially
and
not
give
preferential
treatment
to
a
private
organization
or
individual.
In
addition,
employees
must
strive
to
avoid
any
action
that
would
create
the
appearance
that
they
are
violating
the
law
or
ethical
standards.
By
observing
these
general
principles,
employees
help
to
ensure
that
citizens
have
complete
confidence
in
the
integrity
of
Government
operations
and
programs.
Copyright
02000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Ethics
Areas
for
Study
•
Gifts
from
outside
sources
•
Gifts
between
employees
•
Conflicting
financial
interests
•
Seeking
other
employment
•
Outside
activities
Gifts
from
Outside
Sources
Executive
Branch
employees
are
subject
to
restrictions
on
the
gifts
that
they
may
accept
from
sources
outside
the
Government.
Generally,
they
may
not
accept
gifts
that
are
given
because
of
their
official
position
or
that
come
from
certain
interested
sources
("prohibited
sources").
Prohibited
sources
include
persons
(or
an
organization
made
up
of
such
persons)
who
do
the
following:
•
Seek
official
action
by
the
employee's
agency.
•
Do
or
seek
to
do
business
with
the
employee's
agency.
•
Are
regulated
by
the
employee's
agency.
•
Have
interests
that
may
be
substantially
affected
by
performance
or
non-performance
of
the
employee's
official
duties.
There
are
a
number
of
exceptions
to
the
ban
on
gifts
from
outside
sources.
These
ceptioris
would
allow
the
acceptance
of
gifts
in
the
following
circumstances:
•
Where
the
value
of
the
gift
is
$20
or
less
(not
to
exceed
$50
annually).
•
VVhere
the
gift
is
based
solely
on
a
family
relationship
or
personal
friendship.
•
Where
the
gift
is
based
on
an
outside
business
or
employment
relationship.
•
Where
the
gift
is
in
connection
with
certain
political
activities.
Employees
may
accept
gifts
of
free
attendance
at
certain
widely
attended
gatherings
provided
that
there
has
been
a
determination
that
attendance
is
in
the
interest
of
the
agency.
Invitations
from
non
-sponsors
of
the
event
may
be
accepted
provided
that
certain
additional
conditions
are
met.
There
are
also
exceptions
for
discounts,
awards
and
honorary
degrees,
certain
social
events,
meals,
refreshments,
and
entertainment
in
foreign
countries.
These
exceptions
are
subject
to
some
limitations
on
their
use.
For
example,
an
employee
can
never
solicit
or
coerce
the
offering
of
a
gift.
Nor
can
an
employee
use
exceptions
to
accept
gifts
on
such
a
frequent
basis
that
a
reasonable
person
would
believe
that
the
employee
was
using
public
office
for
private
gain.
Some
other
things
are
not
treated
as
gifts
and
may
be
accepted
without
any
limitations.
Modest
refreshments
(such
as
coffee
and
donuts),
greeting
cards,
plaques
and
other
items
of
little
intrinsic
value,
rewards
and
prizes
open
to
the
general
public,
and
pension
benefits
from
a
former
employer
are
just
a
few
examples.
1.2.27
Copyright
©
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
If
an
employee
has
received
a
gift
that
cannot
be
accepted,
the
employee
may
return
the
gift
or
pay
its
market
value.
If
the
gift
is
perishable
and
it
is
not
practical
to
return
it,
the
gift
may,
with
approval,
be
given
to
charity
or
shared
in
the
office.
Acceptance
of
Gifts
by
Injured
or
Ill
Service
Members
and
Their
Families
Effective
September
11,
2001,
certain
covered
DoD
employees,
military
members,
and
their
families
may
accept
unsolicited
gifts
from
non
-Federal
entities,
subject
to
certain
limitations
identified
in
the
Joint
Ethics
Regulation,
Paragraph
3-400.
For
gifts
with
an
aggregate
market
value
in
excess
of
"minimal
value,"
per
source,
per
occasion,
or
with
an
aggregate
market
value
exceeding
$1,000
from
any
one
source,
an
agency
ethics
official
must
make
a
written
determination
that
the
gift
in
question
meets
the
criteria
of
the
law.
Gifts
Between
Employees
Executive
Branch
employees
may
not
make
a
gift
to
an
official
superior
nor
can
an
employee
accept
a
gift
from
another
employee
who
receives
less
pay
except
in
certain
circumstances
or
on
certain
occasions.
On
the
other
hand,
there
are
no
restrictions
to
gifts
from
superiors
to
subordinates.
On
an
occasional
basis,
including
occasions
when
gifts
are
traditionally
given
or
exchanged,
the
following
individual
gifts
to
a
supervisor
are
permitted:
•
Gifts
other
than
cash
that
are
valued
at
no
more
than
$10.
•
Food
and
refreshments
shared
in
the
office
among
employees.
•
Personal
hospitality
in
the
employee's
home
that
is
the
same
as
that
customarily
provided
to
personal
friends.
•
Gifts
given
in
connection
with
the
receipt
of
personal
hospitality
that
is
customary
to
the
occasion.
•
Transferred
leave
provided
that
it
is
not
to
an
immediate
superior.
On
certain
special
infrequent
occasions,
a
gift
may
be
given
that
is
appropriate
to
the
occasion.
These
occasions
include
the
following:
•
Events
of
personal
significance
such
as
marriage,
illness,
or
the
birth
or
adoption
of
a
child.
•
Occasions
that
terminate
the
subordinate
-official
superior
relationship
such
as
retirement,
resignation,
or
transfer.
•
Employees
may
solicit
or
contribute,
on
a
strictly
voluntary
basis,
nominal
amounts
for
a
group
gift
to
an
official
superior
on
special
infrequent
occasions
and
occasionally,
for
items
such
as
food
and
refreshments,
to
be
shared
among
employees
at
the
office.
Regardless
of
the
number
of
DoD
employees
contributing
to
a
gift
or
gifts
on
these
occasions,
a
DoD
employee
may
not
accept
a
gift
or
gifts
from
a
donating
group
if
the
market
value
exceeds
an
aggregate
of
$300
and
if
the
DoD
employee
knows
or
has
reason
to
know
that
any
member
of
the
donating
group
is
his
subordinate.
The
$10
limitation
per
subordinate
still
applies.
1.2.28
Copyright
©
2000,
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Conflicting
Financial
Interests
Executive
Branch
employees
are
prohibited
by
18
USC
208(a)
from
participating
personally
and
substantially
in
a
particular
matter
that
will
affect
certain
fi
nancial
interests.
These
include
the
fi
nancial
interests
of:
•
The
employee.
•
The
employee's
spouse
or
minor
child.
•
The
employee's
general
partner.
•
An
organization
in
which
the
employee
serves
as
an
officer,
director,
trustee,
general
partner,
or
employee.
•
A
person
with
whom
the
employee
is
negotiating
for
or
has
an
arrangement
concerning
prospective
employment.
An
employee
may
deal
with
a
potential
conflict
of
interest
in
a
number
of
ways.
The
employee
may
simply
not
participate
in
the
matter
that
would
pose
the
conflict.
This
is
called
"recusal."
The
employee
may
also
obtain
a
waiver
from
the
agency,
sell
off
or
"divest"
the
conflicting
interest,
or
resign
from
the
conflicting
position.
Which
remedy
is
appropriate
will
depend
upon
the
particular
circumstances.
Agencies
may,
by
supplemental
regulation,
prohibit
or
restrict
the
holding
of
certain
financial
interests
by
all
agency
employees
or
groups
of
employees,
and
a
few
extend
such
restrictions
to
the
employee's
spouse
and
minor
children.
Financial
Disclosure
The
Office
of
Government
Ethics
(OGE)
oversees
the
administration
of
public
and
confidential
financial
disclosure
systems
for
the
Executive
Branch.
It
also
administers
the
blind
trust
and
certificate
of
divestiture
programs
in
the
Executive
Branch.
FINANCIAL
DISCLOSURE:
PUBLIC
FINANCIAL
DISCLOSURE
The
Ethics
in
Government
Act
of
1978,
as
amended,
requires
senior
officials
in
the
executive,
legislative
and
judicial
branches
to
file
public
reports
of
their
finances
as
well
as
other
interests
outside
the
Government.
The
statute
and
the
Office
of
Government
Ethics'
(OGE)
regulations
specify
which
officials
in
the
Executive
Branch
fi
le
an
OGE
Form
278.
Unlike
confidential
fi
nancial
statements
filed
by
some
mid
-level
employees,
the
OGE
278
is
available
to
the
public.
Reviewing
officials
within
each
agency
certify
and
maintain
these
reports.
Agencies
do,
however,
forward
reports
of
Presidential
appointees
confirmed
by
the
Senate
and
certain
other
reports
to
OGE
for
additional
review
and
certification.
Although
a
financial
disclosure
report
sometimes
reveals
a
violation
of
law
or
regulation,
the
primary
purpose
of
disclosure
is
to
assist
agencies
in
identifying
potential
conflicts
of
interest
between
a
fi
ler's
official
duties
and
the
fi
ler's
private
fi
nancial
interests
and
affiliations.
Once
a
reviewing
official
identifies
a
potential
conflict
of
interest
and
consults
with
the
fi
ler's
supervisor
as
necessary,
several
remedies
are
available
to
avoid
an
actual
or
apparent
violation
of
Federal
ethics
laws
and
regulations.
Certain
senior
officers
and
employees
of
the
Executive
Branch
are
required
to
fi
le
a
public
report
(SF
278,
Public
Financial
Disclosure
Report)
disclosing
their
financial
interests
as
well
as
the
interests
of
their
spouses
and
minor
children.
Public
fi
lers
must
report
the
following:
•
Any
interest
in
property
held
in
a
trade
or
business
or
for
investment
or
the
production
of
income
(real
estate,
stocks,
bonds,
securities,
futures
contracts,
beneficial
interests
in
trusts
or
estates,
pensions
and
annuities,
mutual
funds,
etc.)
that
meet
reporting
thresholds.
1.2.29
Copyright
©
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource Management
Environment
Competency
Area
2:
Manpower
Management
•
Earned
income,
retirement
benefits,
honoraria,
and
any
other
non
-investment
income.
•
Gifts
and
reimbursements
that
meet
reporting
thresholds.
•
Liabilities
(personal
loans
form
certain
family
members,
a
mortgage
on
a
personal
residence,
an
automobile
loan,
furniture
and
appliance
loans,
and
revolving
charge
accounts
that
do
not
exceed
$10,000
at
the
close
of
the
reporting
period
are
excluded
from
reporting).
•
Agreements
or
arrangements
with
respect
to
future
employment,
leaves
of
absence,
and
continuation
of
payments
or
benefits
from
a
former
employer.
•
Outside
positions
such
as
an
officer,
director,
trustee,
general
partner,
proprietor,
employee,
or
consultant
of
any
organization
(positions
with
religious,
social,
fraternal,
or
political
entities
are
excluded,
as
are
solely
honorary
positions).
FINANCIAL
DISCLOSURE:
CONFIDENTIAL
FINANCIAL DISCLOSURE
Certain
other,
less
-senior
Executive
Branch
employees
whose
duties
involve
the
exercise
of
discretion
in
sensitive
areas
such
as
contracting,
procurement,
administration
of
grants
and
licenses,
and
regulating
or
auditing
non
-Federal
entities
are
required
to
fi
le
confidential
financial
disclosure
reports
(OGE
Form
450).
This
reporting
system
generally
tracks
the
approach
of
the
public
disclosure
system,
with
some
differences.
Ranges
of
values
of
assets
and
income
from
assets
are
not
required
to
be
reported;
nor
are
interests
in
or
income
from
bank
accounts,
money
market
mutual
funds,
U.S.
obligations,
and
Government
securities.
The
most
notable
difference
is
that
confidential
reports
are
not
available
to
the
public.
FINANCIAL
DISCLOSURE: REMEDIES
FOR
AVOIDING
POTENTIAL
CONFLICTS
OF
INTEREST
There
are
several
options
available
to
senior
officers
and
employees
of
the
Executive
Branch
who
are
at
risk
of
conflict
of
interest.
These
options
are
described
below.
•
Recusal.
One
remedy
that
is
often
appropriate
for
avoiding
a
potential
conflict
of
interest
is
recusal
or
disqualification.
This
simply
means
that
the
employee
does
not
participate
in
a
matter
that
could
affect
the
employee's
fi
nancial
interest.
•
Waivers.
Another
remedy
for
dealing
with
conflicts
of
interest
is
the
use
of
waivers.
An
individual
waiver
of
the
statutory
bar
may
be
granted
by
an
authorized
official
when
the
conflicting
financial
interest
is
not
substantial.
For
example,
an
official
might
grant
a
waiver
if
the
employee
owned
only
a
few
shares
of
a
particular
stock.
Waivers
may
also
be
granted
to
special
Government
employees
serving
on
advisory
committees.
The
OGE
is
authorized
to
issue
regulatory
waivers
for
certain
classes
of
financial
interest,
and
such
a
regulation
was
recently
issued
as
a
final
rule.
Finally,
waivers
are
available
for
dealing
with
conflicts
that
arise
from
fi
nancial
interests
derived
from
Native
American
birthrights.
•
Certificates
of
Divestiture.
Section
1043
of
the
Internal
Revenue
Code
provides
for
the
deferral
of
capital
gains
taxes
on
assets
that
must
be
sold
to
comply
with
ethics
program
requirements.
Proceeds
from
divested
assets
must
be
reinvested
in
certain
specified
categories
of
investments.
This
change
allows
for
a
more
fl
exible
remedy
to
conflicts
that
avoid
subjecting
an
Executive
Branch
employee
to
costly
tax
consequences
that
would
otherwise
result
from
the
sale.
In
order
to
take
advantage
of
the
tax
deferral
mechanism,
a
Certificate
of
Divestiture
must
be
obtained
from
the
OGE
before
the
sale
occurs.
Certificates
of
Divestiture
are
issued
by
the
OGE
in
accordance
with
its
procedures
and
policies.
•
Trusts.
A
blind
trust
may
be
available
as
a
remedy
for
a
potential
conflict
of
interest.
In
order
to
be
recognized,
the
trust
must
include
certain
required
provisions
in
the
trust
instrument
and
have
an
approved
independent
trustee.
A
blind
trust
must
be
approved
by
the
Director
of
OGE
before
it is
executed.
There
is
no
requirement
that
a
person
use
a
blind
trust
as
a
means
of
resolving
potential
conflicts
of
interest.
Generally,
a
blind
trust
will
be
appropriate
when
the
holdings
are
of
such
an
array
and
magnitude
that
creation
of
a
qualified
trust
would
be
the
most
practical
means
of
avoiding
conflicts.
1.2.30
Copyright
0
2000,
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Impartiality
in
Performing
Official
Duties
Executive
Branch
employees
are
required
to
consider
whether
their
impartiality
may
be
questioned
whenever
their
involvement
in
a
particular
matter
might
affect
certain
personal
and
business
relationships.
A
pending
case,
contract,
grant,
permit,
license,
or
loan
are
some
examples
of
particular
matters
involving
specific
parties.
General
rulemaking,
on
the
other
hand,
is
not.
If
such
a
matter
would
have
an
effect
on
the
fi
nancial
interest
of
a
member
of
the
employee's
household,
or
a
person
with
whom
the
employee
has
a
"covered
relationship,"
or
represents
a
party
to
such
a
matter,
then
the
employee
must
consider
whether
a
reasonable
person
would
question
the
employee's
impartiality
in
the
matter.
If
the
employee
concludes
that
there
would
be
a
perceived
problem,
then
the
employee
should
not
participate
in
the
matter
unless
authorized
by
the
agency.
An
employee
has
a
"covered
relationship"
with
the
following
persons:
•
A
person
with
whom
the
employee
has
or
seeks
a
business,
contract,
or
other
fi
nancial
relationship.
•
A
person
who
is
a
member
of
the
employee's
household
or
with
whom
the
employee
has
a
close
personal
relationship.
•
A
person
for
whom
the
employee's
spouse,
parent,
or
dependent
child
serves
as
an
officer,
director,
trustee,
general
partner,
agency,
attorney,
consultant,
contractor,
or
employee.
•
Any
person
for
whom
the
employee
has,
within
the
last
year,
served
as
officer,
director,
trustee,
general
partner,
agent,
attorney,
consultant,
contractor,
or
employee.
•
Any
organization
in
which
the
employee
is
an
active
participant.
An
employee
may
have
a
concern
that
circumstances
other
than
those
expressly
described
in
the
regulation
may
raise
a
question
regarding
the
employee's
impartiality.
In
such
a
situation,
the
employee
should
follow
the
procedures
described
in
the
regulation
to
determine
whether
or
not
participation
in
the
particular
matter
would
be
appropriate.
Some
persons
who
enter
Government
service
may
receive
a
special
severance
payment
or
other
benefit
that
their
former
employer
does
not
make
to
other
departing
employees
not
entering
into
Federal
service.
If
such
a
payment
made
prior
to
entering
Government
service
is
in
excess
of
$10,000
and
if
certain
other
factors
are
present,
then
the
employee
is
disqualified
for
two
years
from
participating
in
any
matter
in
which
the
former
employer
is
a
party
or
represents
a
party.
The
agency
may
waive
or
shorten
the
disqualification
period.
Seeking
Other
Employment
Executive
Branch
employees
may
not
participate
in
any
particular
Government
matter
that
will
affect
the
financial
interests
of
a
person
or
entity
with
which they
are
seeking
employment.
An
employee
is
considered
to
be
seeking
employment
if:
•
The
employee
is
engaged
in
actual
negotiations
for
employment.
•
A
potential
employer
has
contacted
the
employee
about
possible
employment
and
the
employee
makes
a
response
other
than
rejection.
•
The
employee
has
contacted
a
prospective
employer
about
possible
employment
(unless
the
sole
purpose
of
the
contact
is
to
request
a
job
application
or
if
the
person
contacted
is
affected
by
the
performance
of
the
employee's
duties
only
as
part
of
an
industry).
An
employee
is
considered
no
longer
seeking
employment
if:
•
Either
the
employee
or
the
prospective
employer
rejects
the
possibility
of
employment
and
all
discussions
of
possible
employment
have
ended.
1.2.31
Copyright
©
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
•
Two
months
have
elapsed
since
the
employee's
dispatch
of
an
unsolicited
resume
and
the
employee
has
received
no
expression
of
interest
from
the
prospective
employer.
In
some
cases,
the
employee
may
be
authorized
by
an
agency
official
to
participate
in
particular
matters
from
which
he/she
would
otherwise
have
to
be
disqualified
due
to
his/her
job
search.
If
a
search
fi
rm
or
other
intermediary
is
involved,
the
employee
is
not
disqualified
unless
the
intermediary
identifies
the
prospective
employer
to
the
employee.
Misuse
of
Position
Executive
Branch
employees
must
not
use
their
public
offices
for
their
own,
or
another's,
private
gain.
Employees:
•
May
not
use
their
positions,
titles,
or
any
authority
associated
with
their
office
to
coerce
or
induce
a
benefit
for
themselves
or
others.
•
May
not
use
or
allow
the
improper
use
of
non-public
information
to
further
a
private
interest,
either
their
own
or
another's.
•
May
not
use
Government
property
(office
supplies,
telephones,
computers,
copiers,
and
any
other
property
purchased
with
Government
funds
)
for
other
-than
-authorized
purposes.
•
May
not
misuse
official
time.
This
includes
the
employee's
own
time
as
well
as
the
time
of
a
subordinate.
Outside
Activities
Executive
Branch
employees
are
subject
to
a
number
of
limitations
regarding
the
outside
activities
in
which
they
may
be
involved.
An
employee
may
not
have
outside
employment
or
be
involved
in
any
outside
activity
that
conflicts
with
the
official
duties
of
the
employee's
position.
An
activity
conflicts
with
official
duties
if:
•
It
is
prohibited
by
statute
or
by
the
regulations
of
the
employee's
agency.
•
The
activity
would
require
the
employee
to
be
disqualified
from
matters
so
central
to
the
performance
of
the
employee's
official
duties
as
to
materially
impair
the
employee's
ability
to
carry
out
those
duties.
Employees
of
some
agencies
may
be
required
by
their
agency's
own
supplemental
conduct
regulations
to
obtain
prior
approval
before
engaging
in
certain
outside
employment
or
activities.
Employees
generally
may
not
be
paid
for
outside
teaching,
speaking,
and
writing
if
these
activities
relate
to
the
employee's
official
duties.
However,
there
is
an
exception
that
would
allow
an
employee
to
be
paid
for
teaching
certain
courses
at
accredited
educational
institutions.
An
employee
may
not
use
his/her
official
title
or
position
(except
as
part
of
a
biography
or
for
identification
as
the
author
of
an
article
with
an
appropriate
disclaimer)
to
promote
a
book,
seminar,
course,
program,
or
similar
undertaking.
Employees
may
engage
in
fundraising
in
a
personal
capacity,
subject
to
several
restrictions.
An
employee
cannot:
•
Solicit
funds
from
subordinates.
•
Solicit
funds
from
persons
who
have
interests
that
may
be
affected
by
the
employee's
agency,
such
as
those
who
are
regulated
by,
seeking
official
action
from,
or
doing
business
with
the
agency.
•
Use
or
permit
the
use
of
the
employee's
official
title,
position,
or
authority
to
promote
the
fundraising
effort.
1.2.32
Copyright
0
2000,
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Honoraria
Compensation
for
a
lecture,
speech,
or
writing
may
be
restricted
by
the
honoraria
prohibition
of
5
USC
501
and
5
CFR
2636.
However,
on
February
22,
1995,
the
U.S.
Supreme
Court
decided
United
States
v.
National
Treasury
Employees
Union,
affirming
a
court
of
appeals
decision
enjoining
enforcement
of
the
honoraria
prohibition
against
Federal
employees
below
grade
GS
-16.
The
ban
may
still
be
enforceable
against
Federal
employees
in
grades
GS
-16
or
above
and
those
paid
under
other
schedules.
The
restrictions
of
5
CFR
2635.807(a)
continue
to
apply
to
all
DoD
employees,
including
the
prohibition
on
receiving
compensation
for
teaching,
speaking,
and
writing
that
relates
to
their
official
duties
(subject
to
an
exception
for
teaching
certain
courses).
A
DoD
employee
who
uses
or
permits
the
use
of
his/her
military
grade
or
who
includes
or
permits
the
inclusion
of
his/her
title
or
position
as
one
of
several
biographical
details
given
to
identify
himself/herself
in
connection
with
teaching,
speaking
or
writing
shall
make
a
disclaimer
if
the
subject
of
the
teaching,
speaking,
or
writing
deals
in
significant
part
with
any
ongoing
or
announced
policy,
program
or
operation
of
the
DoD
employee's
agency
and
the
DoD
employee
has
not
been
authorized
by
appropriate
agency
authority
to
present
that
material
as
the
agency's
position.
The
required
disclaimer
shall
expressly
state
that
the
views
presented
are
those
of
the
speaker
or
author
and
do
not
necessarily
represent
the
views
of
DoD
or
its
Components.
Where
a
disclaimer
is
required
for
an
article,
book
or
other
writing,
the
disclaimer
shall
be
printed
in
a
reasonably
prominent
position
in
the
writing
itself.
Where
a
disclaimer
is
required
for
a
speech
or
other
oral
presentation,
the
disclaimer
may
be
given
orally
provided
it
is
given
at
the
beginning
of
the
oral
presentation.
Post
-Employment
Executive
Branch
employees
are
subject
to
certain
restrictions
on
their
activities
after
they
leave
Government
service.
Two
of
the
restrictions
apply
to
matters
involving
specific
parties
with
whom
they
were
involved
while
in
Government
service.
•
If
the
employee's
involvement
in
such
a
matter
was
personal
and
substantial,
then
the
employee
is
permanently
barred
from
representing
anyone
on
that
same
matter
to
any
Federal
department,
agency,
or
court.
•
If
the
matter
was
under
the
employee's
official
responsibility
during
the
last
year
of
Government
service,
then
the
employee
is
barred
for
two
years
after
leaving
Government
service
from
representing
anyone
on
that
same
matter
to
the
Government.
In
addition,
certain
high-level
officials
are
subject
to
a
so-called
"one-year
cooling
-off
period."
For
a
period
of
one
year
after
leaving
a
senior
position,
the
official
may
not
make
any
appearance
on
behalf
of
any
person
(other
than
the
United
States)
before
his
former
agency
with
the
intent
to
influence
the
agency
on
any
matter
in
which
that
person
seeks
official
action.
Employees
who
participated
personally
and
substantially
in
ongoing
trade
or
treaty
negotiations
and
had
access
to
certain
information
are
subject
to
a
one-year
restriction
after
they
leave
Government
service
on
representing,
aiding,
or
advising
anyone
concerning
those
ongoing
trade
or
treaty
negotiations.
Former
very
senior
employees
are
subject
to
an
additional
restriction
during
the
first
year
after
they
have
left
Government
on
the
person
throughout
the
Executive
Branch
who
may
be
contacted.
Former
senior
and
very
senior
employees
are
restricted
for
one
year
after
leaving
Government
service
from
representing,
aiding,
or
advising
foreign
governments
or
foreign
political
parties
before
an
agency
or
department
of
the
United
States.
1.2.33
Copyright
C)
2000.
revised
2018
(v20185)
by
the
American
Society
of
Military
Comptrollers.
All
gh
s
reserved
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
Additionally,
certain
persons
appointed
on
or
after
January
20,
1993,
must
sign
an
ethics
pledge
that
establishes
a
contractual
commitment
regarding
their
activities
after
they
have
been
employed
as
"senior
appointees"
or
after
they
have
participated
personally
and
substantially
in
trade
negotiations.
Representation
to
Government
Agencies
and
Courts
Executive
Branch
employees
are
subject
to
criminal
statutes
that
prohibit
the
representation
of
private
interests
before
the
Government.
One
of
these
laws
prohibits
an
employee
from
prosecuting
a
claim
against
the
United
States
or
representing
a
private
party
before
the
Government
in
connection
with
a
particular
matter
in
which
the
United
States
is
a
part
or
has
a
direct
and
substantial
interest.
This
prohibition
applies
whether
or
not
the
employee
receives
compensation
for
the
representation.
There
are
exceptions
that
would
allow
an
employee
to
represent
the
following
with
or
without
compensation:
•
The
employee;
•
A
parent,
spouse,
or
child
of
the
employee;
or
•
A
person
or
estate
for
which
the
employee
serves
as
a
guardian,
executor,
administrator,
trustee,
or
personal
fi
duciary.
The
matter
involved
must
not
be
one
in
which
the
employee
participated
personally
and
substantially
or
which
was
the
subject
of
the
employee's
official
responsibility.
Also,
the
employee
must
obtain
approval
for
the
activity
from
the
employee's
appointing
official.
An
employee
may
represent
employee
non-profit
organizations
(such
as
child-care
centers,
recreational
associations,
professional
organizations,
credit
unions,
or
other
similar
groups)
before
the
U.S.
Government
under
certain
circumstances.
The
employee
may
not
be
compensated.
The
employee
may
not
represent
an
employee
group
in
claims
against
the
Government;
in
seeking
grants,
contracts,
or
cash
from
the
Government;
or
in
litigation
where
the
group
is
a
party.
An
employee
may
take
on
uncompensated
representation
of
a
person
who
is
the
subject
of
disciplinary,
loyalty,
or
personnel
administration
proceedings.
Another
law
governing
representational
activity
prohibits
an
employee
from
accepting
compensation
for
certain
representational
services
before
the
Government
whether
or
not
those
services
were
provided
by
the
employee
personally
or
by
some
other
person.
Again,
there
are
exceptions
to
this
law
that
would
allow
for
the
representation
of
a
parent,
spouse,
child,
or
other
person
who
served
in
a
fi
duciary
capacity.
Supplementation
of
Salary
Executive
Branch
employees
may
not
be
paid
by
any
agency
other
than
the
United
States
Government
for
doing
their
Government
jobs.
Thus,
for
example,
a
highly
paid
executive
of
a
corporation,
upon
entering
Government
service,
could
not accept
an
offer
from
his
or
her
former
employer
to
make
up
the
difference
between
the
Government
salary
and
the
compensation
received
from
the
former
employer.
This
prohibition
does
not
apply
to
the
following:
•
Certain
special
Government
employees
and
employees
serving
without
compensation.
•
Funds
contributed
out
of
the
treasury
of
any
state,
county,
or
municipality.
•
Continued
participation
in
a
bona
fide
pension;
retirement;
group
life,
health,
or
accident
insurance;
profit-sharing;
stock
bonus;
or
other
employee
welfare
or
benefit
plan
maintained
by
a
former
employer.
•
Payments
made
to
an
employee
by
a
tax-exempt
non-profit
organization
for
travel,
subsistence,
and
other
expenses
incurred
in
connection
with
training.
•
Moving
expenses
incurred
in
connection
with
participation
in
an
Executive
exchange or
fellowship
program
in
an
Executive
agency.
1.2.34
Copyright
©
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Module
1:
Resource
Management
Environment
Competency
Area
2:
Manpower
Management
•
Reserve
military
officers
and
certain
temporarily
commissioned
military
officers
who
are
ordered
to
active
duty
may
continue
to
receive
compensation
from
individuals
who
furnished
compensation
to
them
prior
to
being
ordered
to
active
duty.
Informal
Advisory
Letters
and
Memoranda
and
Formal
Opinions
The
OGE
provides
both
informal
advisory
letters
and
memoranda
and
formal
opinions
concerning
the
application
of
the
Ethics
in
Government
Act
of
1978
(including
its
fi
nancial
disclosure
provisions),
the
criminal
conflict
of
interest
laws,
the
administrative
standards
of
ethical
conduct
and
related
Executive
Orders,
and
other
administrative
regulations
issued
by
the
OGE.
At
the
discretion
of
the
Director,
formal
advisory
opinions
will
be
rendered
on
matters
of
general
applicability
or
on
important
matters
of
first
impression.
Where
a
request
does
not
meet
the
requirements
for
a
formal
advisory
opinion,
the
OGE
may
respond
with
an
informal advisory
letter
or
memorandum.
The
informal
advisory
letters
and
memoranda
and
formal
opinions
for
the
period
1979-1988
have
been
published
in
a
bound
volume
by
the
Government
Printing
Office
(GPO).
Annual
supplements
to
the
bound
volume
have
been
published
in
a
loose-leaf
format
and
are
current
through
calendar
year
2002.
These
opinions
are
also
available
on
the
OGE's
Ethics
Bulletin
Board
System
(TEBBS),
The
Ethics
CD-ROM,
and
the
Ethics
Resource
Library
web
site:
http://www.USOGE.gov/.
1.2.35
Copyright
CD
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.
Enhanced
Defense
Financial
Management
Training
Course
page
intentionally
left
blank
Copyright©
2000.
revised
2018
(v2018a)
by
the
American
Society
of
Military
Comptrollers.
All
rights
reserved.